Mon, May 28, 2012, 1:41 PM EDT - U.S. Markets closed for Memorial Day

Iran sets conditions for oil to European nations

Iran sets conditions for future oil sales to European nations after cutoffs to Britain, France

TEHRAN, Iran (AP) -- Iran has laid out conditions for future oil exports to other European countries after halting sales to Britain and France earlier this week, the Iranian Foreign Ministry spokesman said Tuesday.

The remarks by the spokesman, Ramin Mehmanparast, came a day after oil prices jumped to a nine-month high above $105 a barrel following Iran's announced halts in crude shipments in an escalation of the dispute over the country's nuclear program.

Tehran also said Monday it was considering extending the oil embargo to other European Union countries. The halt in crude to British and French companies was an apparent pre-emptive blow against the EU after the bloc imposed sanctions on Iran's fuel exports, including a freeze of the country's central bank assets and an oil embargo set to begin in July.

Many Western countries fear Iran's nuclear program masks ambitions to build atomic weapons, and have carried out a string of sanctions aimed to press Iran to cooperate. Iran denies the charges, saying its program is for civilian-sector uses, such as generating electricity.

Mehmanparast told reporters Tuesday that Tehran seeks guarantees of payments, long term contracts and a ban on unilateral cancellation of contracts by buyers. He said all these should be considered if Europe wants continued trade and oil relations.

The terms were conveyed in a meeting with ambassadors of six European countries in Tehran, Mehmanparast said. He did not say when the meting took place.

"Iran's conditions include guarantee of payment of the price on our oil, relatively long-term and midterm contracts from three to five years," he said, adding also that there could be no "unilateral cancellation of the contracts by oil buyers."

He claimed these conditions would facilitate cooperation and would be fair to both Iran and the Europeans.

Iran's Oil Minister Rostam Qassemi took a similar stance, telling the official IRNA news agency Tuesday that "other European countries should decide as soon as possible about long term contracts for buying oil from Iran."

The 27-nation EU accounts for about 18 percent of Iran's oil exports. With a daily production of nearly four million barrels of oil, Iran earns up to 80 percent of its foreign revenue from crude export.

Mehmanparast said the cutoffs to Britain and France were due to the "hostile attitude" toward Iran.

"As we consider ourselves committed to provide Europe with energy, they have to consider themselves committed to paying the price and fulfilling the contracts," said Mehmanparast. "We support a continuation of relations with European countries."

On Tuesday, oil prices remained above $104 but retreated from recent highs after European leaders agreed to lend Greece euro130 billion ($172 billion) to avoid a debt default.

 
  • trish  •  Kettle Falls, Washington  •  3 months ago
    Read the news this morning,now there talking five dollar a gallion gas,aint that great! I live out in the country in southern oregon,and have a few horses around,I guess I better hitch them up because I sure as hell cant afford that price,and I doubt if many other americans can either. Surplus oil in every part of this country,parked on rail sideings,every tank full,no place to even put it,and yet up goes the price of gas,,I guess we all know where this is leading,we seen it a few years back,,,,well we might all be out of a job in a few more months,but one thing will be sure,that when the country dies again,gas will come down,,,but we wont have any money to buy it because we will all be out of a job
    • SayWhen 3 months ago
      Marry me and live on my exotic island in the Indian ocean, on the equator where life is wave riding, scuba diving and holidaying in the cool hills....
    • Name-Changed-To-Avoid-Cen ... 3 months ago
      YOU can thank Isreal and their stooges in Congress for $5 a gallon gas.
    • Trader_124 3 months ago
      You should thank your stupid gouvernment. All they want is to please the AIPAC so they can get money for election and get some votes. Your gouvernment doesn't give a #$%$ about the normal citizen
  • KHUSRO Y  •  Washington, District of Columbia  •  3 months ago
    In view of the European resolution to boycott Iranian oil, one would expect Europe to be ready for such an action by Iran. Why would this be unexpected and why would Europe be not ready?
    • Schmoozie J 3 months ago
      Like most politicians they probably didn't think that far ahead.
    • Name-Changed-To-Avoid-Cen ... 3 months ago
      Euro politicians just acted as stooges for Isreal against the interest of their own people.
    • LloydE 3 months ago
      There is no other source of oil at current prices, and the EU can't afford to pay higher prices that will come about with lower supply. That makes the politicians in the EU dumber than dirt. Almost on par with those in D.C.
  • greasefoot  •  Pittsburgh, Pennsylvania  •  3 months ago
    If the European nations disconnect Iran’s banks from the SWIFT wire network any guaranty they may have will be worthless. Iran will not be able to send or receive funds from outside the country. Their currency will be devalued and they will be walking around with suitcases of worthless currency.

    I love this idea and it does not need a vote from the Untied Nations for approval!
    • GG 3 months ago
      Sounds Good to me
    • gus 3 months ago
      do you think your gasoline will be cheaper ? think again
  • GG  •  3 months ago
    The Huge Shock Story of the Day , Who Really Cares?
  • You got to be kidding!  •  Harrisburg, Pennsylvania  •  3 months ago
    Iran is just going to play games and keep using delaying tatics to make sure they buy time to get the bomb developed and tested. They will then be in the drivers seat and make bigger demands.
  • Georgie  •  3 months ago
    So let me get this straight, Iran are imposing conditions for the sale of oil to the EU that the EU are refusing to buy. Mmmmmm clever these Iranians. Good job the Russians and Chinese still want to cosy up to them. Maybe hoping to sell them nuclear "power station" expertise?
    • tonym 3 months ago
      North Korea, Iran and Syria are stooges the Russians and Chinese use as satellites to bring down the US without directly committing anything to that effort; thus, giving themselves maximum deniability. The US Government is to egotistical (or better yet to distracted) to see that simplicity.
  • prguy  •  Oregon, Wisconsin  •  3 months ago
    We spend all this money on policing the World no wonder our Deficit is so high. Anyone else see the problem here.
  • Lickity Split  •  London, United Kingdom  •  3 months ago
    Tossers the UK doesn't need Iranian Oil! Iranian Oil only accounts for 1% of our total imports.
  • Buzzer Cool  •  3 months ago
    Europe punished Iran by NOT buying their oil and Iran punished Europe by NOT selling oil to them. They're doing exactly the thing their opponent wanted. Are they both supposed to be happy?
  • Cheri  •  Seattle, Washington  •  3 months ago
    Iranian leaders will still be playing poker when the rest of the world starts shooting at them.
  • prguy  •  Oregon, Wisconsin  •  3 months ago
    Let's see, we have Irag, Afganistan, working on Syria, took Lybia easy enough, so lets see, what other country doesn';t want to play along with the New Worlld Order, Oh ya IRAN.
  • bill  •  3 months ago
    Memorial 3 Day National Gas and Diesel Boycott is coming May 26,27 and 28th .Don,t buy any or use any gasoline or diesel all 3 days walk ride a bike ,roller blade.if you must drive stay local Get the word out.
  • THEBUK  •  Meriden, Connecticut  •  3 months ago
    These sanctions agains't Iran are actually becoming sanctions agains't consumers.
  • Hamidreza  •  Paris, France  •  3 months ago
    some1 tells the editor it is "meeting" not "meting"

    Great work by AP though, nice hires recently.
  • Mr.John  •  Beaverton, Oregon  •  3 months ago
    Lets get our vehicles on Natural Gas and be independent of this.
  • NateDog  •  3 months ago
    Screw them we will suffer through it and conserve!
  • nomore  •  Cincinnati, Ohio  •  3 months ago
    Iran should tell Isael " If israel allows the UN to check her Nuke then Iran will allow the UN to check her"
  • MacD  •  San Jose, California  •  3 months ago
    Really? Iran is laying down ultimatums. That's just laughable.
  • voteoften  •  3 months ago
    And why is it we don't build the Keystone Pipeline again?? Mr. President, Please take note...watch gas prices rise and your popularity plummet....watch and learn....just saying.
  • JC  •  West Fork, Arkansas  •  3 months ago
    Let's have a food embargo on Iran. I don't have to drive but, you must eat.
 
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